Green demand fuels ITM Power

?Clean fuel company ITM Power has reported a significant increase in completed projects in its second half and expects to see a big jump in annual income as a result.

ITM Power said it is in the right place at the right time
ITM Power said it is in the right place at the right time

The Sheffield-based firm said its contracts backlog stands at a record level of £45m following an extension of its UK refuelling collaboration agreement with Shell.

The new agreement will run until 2024 and covers the refuelling of all types of hydrogen vehicles - from passenger cars to commercial vehicles, including buses, trucks, trains and ships.​

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ITM's chief executive ​Dr Graham Cooley​ said: "ITM Power is undoubtedly in the right place at the right time. ​This trading and pipeline update demonstrates the attractiveness of our products around the world and the hard work of our team. ​

"​Total recognised revenue, our contracts backlog and quotations against tenders are all showing strong growth and the world outlook for green hydrogen demand and electrolysers is very encouraging."​

​Total income is expected to be £17m​, an increase of over 20​ per cent​ year-on-year. ​A loss of around £6.7m ​will be in line with ​b​oard expectations.

Total financial assets​ ​at the year-end were £19.8m, comprising £5.2m of cash, £1.7m of cash on guarantee and deployed working capital of £12.9m.

The group has spent money buying components for the delivery of ​four​ hydrogen refuelling stations (HRS) in the UK, ​a​ bus HRS in France and materials for the Shell 10MW Refhyne project.

The contracts backlog of £45.1m​ is up 26 per cent since February. It includes £29m of projects under contract and a further £16.1m of awards in the final stages of negotiation.

The tender opportunity pipeline also stands at a record level of £330m, an increase since February of £90m (up 38​ per cent​)​, including 46 active commercial tender responses over the last 12 months with an average project size of £7.2m reflecting strong industrial demand for larger systems.

​ITM said its r​efuelling station network availability was consistently above 98​ per cent​ as a result of the close collaboration with the ​c​ompany's partners Shell and Linde.

The ​c​ompany currently has a portfolio of 34 projects and a team of 10 dedicated project managers, including French and German speakers, who work closely with clients to support the delivery of projects to time and budget. ​ITM said m​any of the projects are innovative in terms of technology, integration and deployment environments.

​The firm said a close working relationship with customers enables ​it to capture valuable learning and to develop leading best practice.

​For​ example, one of the ​c​ompany's electrolysers was deployed in an extreme thermal environment and is now being redeployed, under a commercial agreement, and is being analysed to gain data on deployments at operating temperatures above 40​o​C.

ITM ​said it now has experience of deploying in a range of difficult real-world weather environments including extreme heat and dust, high winds, sea spray and freezing temperatures. ​It said t​his experience generates important and valuable data for system design and accurate tender assessment and costing.